Corporate governance
In January, a lengthy McKinsey & Company report, commissioned by New York City’s mayor, Michael Bloomberg, and senior senator Charles Schumer, lamented the prospect that the US “is jeopardising its lead in talent and falling behind in legal and regulatory competitiveness” compared with competing financial centres, such as London and Hong Kong. Was the consultancy’s report just part of a blusterous lobbying campaign on behalf of Wall Street or do Bloomberg and Schumer have a case?
The report makes some sensible points. It calls for clearer guidance from regulators on Sarbox—even for exempting foreign companies that comply with SEC-approved foreign regulatory regimes—as well as for securities law reform, and a shared set of principles for regulators to guide rulemaking and company conduct.
But what of the underlying data that McKinsey uses to support the idea that America is losing ground? True, America’s share of global IPOs has declined in the past few years, but there are forces other than regulation at play.
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